87R1167 JAM-F By: Reynolds H.B. No. 896 A BILL TO BE ENTITLED AN ACT relating to air quality permits issued by the Texas Commission on Environmental Quality for certain oil and gas facilities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter C, Chapter 382, Health and Safety Code, is amended by adding Section 382.051965 to read as follows: Sec. 382.051965. INSPECTION AND MAINTENANCE REQUIREMENTS FOR OIL AND GAS FACILITIES. (a) A permit by rule or a standard permit relating to a facility described by Section 382.051961(a) must require: (1) the permit holder of a new facility or an existing facility that has been modified to establish a quarterly inspection and maintenance program for the detection and repair of leaks from all valves, pump seals, flanges, compressor seals, pressure relief valves, open-ended lines, tanks, and other process and operation components of the facility that could result in fugitive emissions; (2) for a new facility, a prohibition on the use of venting and limitations on the use of flaring; (3) for an existing facility that has been modified, the elimination of the use of venting and a reduction in the use of flaring; (4) limitations on emissions of volatile organic compounds from storage tanks that have the potential to emit more than one ton of volatile organic compounds per year; (5) limitations on emissions of nitrogen oxides from compressor engines with more than 100 horsepower; (6) maintenance protocols and best practices for compressor stations; and (7) the use and maintenance of no-bleed and low-bleed pneumatic devices and controllers between a wellhead and a natural gas processing plant and the monitoring of emissions from those devices. (b) A program described by Subsection (a)(1) must require the use of leak detection equipment such as optical gas imaging cameras. (c) In adopting rules to implement this section, the commission may consider: (1) applying different standards to new facilities and facilities that have been modified; and (2) using incentives to encourage the use of best practices at facilities subject to this section. SECTION 2. Not later than June 1, 2022, the Texas Commission on Environmental Quality shall adopt rules as necessary to implement Section 382.051965, Health and Safety Code, as added by this Act. SECTION 3. This Act takes effect September 1, 2021.